Tuesday, February 23, 2010

No, this isn't some 'blue' nasty article with cheeky jokes. Quite the contrary, it's for any working citizen that is looking for honest information of what our country is facing financially in the very near future.

If you worry about the value of your savings, the prices you now pay for everything you and your family need to live, then you are old enough for some hard truth. There's hard times still ahead of us, folks.

Handsome, well spoken politicians (of any color) will lie to your face. They will spread "hope" like honey on hot rolls, but in the end they have no clue or real intentions to make the serious adult choices to set the wrongs right. They're just applying for a job to keep themselves from being unemployment. You are their employer and they'll rob you blind when you trust them to watch your store.

Don't put your faith in their promises, put your faith in information. "Government policies should be judged by the outcome, not the intentions"-Milton Friedman (a wise man).

My advice is start hunkering down today. Stop using those credit cards and work to get them paid off. Starting today:

Avoid any form of entertainment that requires any admission, if you are making payments on credit cards then you don't deserve to be entertained.

You know when your car needs tires or a new battery....Plan & Save to buy them from your EMERGENCY SAVINGS ACCOUNT (ESA).

You know if your house is damaged by a storm, you will have the insurance deductible to pay.....Plan & Save to pay it from ESA.

You know what your health insurance deductible will be if ill or injured.....Plan & Save it in your ESA.

Never use those ESA funds for anything else. Keep it in a separate bank if necessary, but keep it out of your hands unless there is a real emergency. Don't even include the amount as your assets, it's not. Consider it a loan from your favorite uncle or daddy if the car needs a battery or your roof leaks next spring. Plan to pay it back (save it again).

I'm a old lady. I've never lived beyond my means except when my "Ex" wrote hot checks to cover his gambling debts. I left him forever. My parents loaned me the money to cover the checks since my credit record was at risk, then I learned a couple of important lessons for managing money until I had repaid them, and was divorced.....You can live on boiled eggs, hot oatmeal, hot tea, and tuna fish sandwiches for twelve months without permanent physical harm.

That was 45 years ago and I still keep a emergency account, except now it covers our funerals.